Fidelity Succession Story Deepens

Fidelity Investments has declined to back Abigail Johnson for the company's succession. The news comes on the heels of reports last week that she transferred some of her stock to family trusts.

"Neither Abby, nor Ned, has ever said that Abby is the heir apparent," said Anne Crowley, a spokeswoman at Boston firm told the Boston Herald. "It is not something she or Ned has ever stated."

Crowley also refused to say if Abigail Johnson was still the largest shareholder. In the latest figures, Abigail Johnson held 24% of the voting stock, while Ned Johnson, her 75-year-old father and Fidelity CEO, was in charge of 12%. The Wall Street Journal reported that an unknown amount of Abigail Johnson's stock was transferred to family trusts, which would change the stock holdings figures.

Crowley said the transfer was made "in connection with an ongoing, family estate- and succession-planning process."

The latest development are somewhat shocking to the financial services world, as many people naturally assumed that Abigail Johnson would succeed her father and a member of the founding family would remain in charge.